Business

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Transcript of Business

By: Melisa Alagic andEmily Van CleaveThe Stock Market as an Economic IndicatorHow does it work?What is the stock market?ReferencesStocks are bought and soldPeople gain or lose moneyPrices go up and downSome people become richSome people lose their moneyBuy share in company ownershipCompanies sell so no loansQuarterly earning reports issuedStock markets for different companiesImportant to dynamic economic activityHistoryStarted in 12th century France1531--Belgium stock exchange openedNo official share exchanged handsEast India companies sponsored voyagesEngland--sold in coffee shopsHistory (cont.)British East India Company powerfulHad government-backed monopolyNo regulations for issuing sharesCrash--stocks banned until 18251773--first exchange in LondonHistory (cont.)NYSE most powerful in U.S.London regulated, NYSE wasn'tNYSE still most powerfulNow global, not just U.S.Many other countries developed exchangesFactsInvestors study trends to decidehttp://www.nasdaq.com/quotes/historical-quotes.aspxhttp://www.investopedia.com/articles/07/stock-exchange-history.aspMillions of stocks each dayAMEX - American Stock ExchangeNASDAQ - National Association of Securities Dealers Automated QuotationsTwo other major U.S. exchangesFacts (cont.)http://money.howstuffworks.com/personal-finance/financial-planning/stocks.htmIncorporation--turning business to corporationShare owner can advise corporationsPrices not fixed--up/downSupply and demand change pricesAlso inflation, interest rates, etc.http://money.howstuffworks.com/personal-finance/financial-planning/stock-market-trends.htmEffects on U.S. EconomyCompanies grows, so economy doesEconomic indicator of U.S. prosperityCan ruin economy (Great Depression)Investors confident=more business growthInvestors unsure=less business growthHistory (cont.)October 1907Corner stock in United CopperBrokerage and bank failures followedBacked the Trust Company of AmericaCreated Federal Reserve systemJ.P Morgan and trust-company presidents History (cont.)October 1929Roaring 20s to Great DepressionMuch money lostFederal agencies to prevent repeathttp://www.marketwatch.com/story/10-greatest-market-crashes-2012-10-171929-1939World War II helped stophttp://www.funtrivia.com/askft/Question54604.html1773/18251905192919071773/1825